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Royal Caribbean (RCL) to Report Q1 Earnings: What to Expect

Royal Caribbean Group RCL is scheduled to report its first-quarter 2023 results on May 4, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 18.3%.

Q1 Estimates

The Zacks Consensus Estimate for the company's first-quarter bottom line is pegged at a loss of 73 cents per share. In the prior-year quarter, the company reported a loss per share of $4.57.

The consensus mark for revenues stands at $2.83 billion, suggesting a surge of 167.5% from the year-ago reported figure.

Factors to Note

Royal Caribbean’s first-quarter performance is likely to have benefited from strong cruising demand, better pricing on close-in demand and strong onboard spending. An increase in ticket revenues, and onboard and other revenues are likely to have aided the top line. Also, technological innovations and product development initiatives are likely to have benefited the company.

Royal Caribbean Cruises Ltd. Price and EPS Surprise

Royal Caribbean Cruises Ltd. Price and EPS Surprise
Royal Caribbean Cruises Ltd. Price and EPS Surprise

Royal Caribbean Cruises Ltd. price-eps-surprise | Royal Caribbean Cruises Ltd. Quote

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For the first quarter, our model predicts passenger ticket revenues, and onboard and other revenues to increase 183.6% to $1,848.8 million and 138.7% to $972.5 million year over year, respectively.

However, China, which is closed for international travelers, and the Russia-Ukraine war are likely to have hurt its performance.

The company’s bottom line is likely to have been negatively impacted by higher costs. Also, for 2023, net cruise costs, excluding fuel per APCD, are likely to increase 4.8%-5.8% in comparison to 2019. These include expected transitory costs related to health protocols and one-time lagging costs related to the fleet ramp-up.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Royal Caribbean this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that's not the case here.

Earnings ESP: Royal Caribbean has an Earnings ESP of -13.18%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks Poised to Beat Earnings Estimates

Here are some stocks from the Zacks Consumer Discretionary sector that investors may consider as our model shows that these have the right combination of elements to post an earnings beat in the quarter to be reported:

Wynn Resorts, Limited WYNN has an Earnings ESP of +111.38% and a Zacks Rank #2.

Shares of Wynn Resorts have surged 59.3% in the past year. WYNN’s earnings beat the estimates in two of the trailing four quarters and missed twice, the average surprise being 0.6%.

Caesars Entertainment, Inc. CZR has an Earnings ESP of +85.29% and a Zacks Rank #3.

Shares of Caesars Entertainment have declined 33.7% in the past year. CZR’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 16.2%.

Playa Hotels & Resorts N.V. PLYA has an Earnings ESP of +40.22% and a Zacks Rank #1.

Shares of Playa Hotels & Resorts have increased 0.8% in the past year. PLYA’s earnings beat estimates in each of the trailing four quarters, the average surprise being 419.4%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report

Wynn Resorts, Limited (WYNN) : Free Stock Analysis Report

Caesars Entertainment, Inc. (CZR) : Free Stock Analysis Report

Playa Hotels & Resorts N.V. (PLYA) : Free Stock Analysis Report

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Zacks Investment Research